This occurred in the year of 2007. I thought once vehicle was repossessed they would resell it and that would cover the difference.
They would need to sue you and get a judgment. A 2007 repossession is likely time-barred in 2015. Consult a consumer attorney if they are trying to collect from you.
Yes. This can happen one of two possible ways. The first way is what was already mentioned, they can sue you for the deficiency and get a judgment. You can find out if there are any judgments against you by going to the Clerk of Court and checking on their computer system or calling an attorney who may be willing to look this up for you. You may have been sued on the deficiency years ago and forgotten about it. (This is much more common than you would think, I hear from several people a year who have unpaid judgments and they swear they never knew about the lawsuit, but when we look at the court file they were properly served). Judgments stay on record for 10 years and are easily renewed. Judgments for unpaid debts are liens on real estate. The second possible way is less likely, but since this is a credit union it may come in to play. Credit unions are allowed to "cross collateralize". If your house mortgage (or HELOC) was with the same credit union, even after you pay the mortgage in full it could be that the credit union has another lien on your house due to "cross collateral" and the deficiency on the car loan may be a lien on your house. If your mortgage was not with the credit union, this second possibility is less likely. Cross collateral also applies if you had a defaulted credit card with the same credit union. I suggest that you contact an experienced attorney for personal advice.
This message is intended for informational purposes only. It is impossible to consider all relevant facts from a message board question. No attorney-client relationship has been created. Readers should seek a personal legal consultation with an attorney of their choice for the most accurate advice.
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